Following the PV exhibition, polysilicon contract signings have remained limited, and prices have declined once again. Specifically, leading manufacturers are finding it nearly impossible to close deals under the current low downstream pricing levels, while other producers are experiencing more significant price concessions.
The main reasons for the price drop are as follows:
The rapid decline in downstream wafer prices has led to expectations of lower raw material costs. Most downstream companies are holding a certain level of polysilicon inventory, resulting in aggressive price suppression for new orders.
Polysilicon producers have begun capacity replacement operations this month, leading to a short-term increase in output. The market believes that the scale of production cuts is below expectations, limiting positive sentiment.
In earlier periods, some companies were forced to offload inventory at low prices to maintain cash flow. As a result, downstream players have established a lower price expectation for raw materials and are currently unwilling to accept higher prices.
As of now, there are 11 polysilicon producers in operation, most of which are running at reduced loads. Some production capacity is expected to resume this month, contributing to an estimated 8% month-on-month increase in output for June.
Source：https://mp.weixin.qq.com/s/nt1SLXk6dyclTT9NHgq60Q